The New Jersey Mental Health Residential Reform Treatment Act aims to address the growing crisis of mental health and substance use disorders in the state, particularly among adolescents and adults. The legislation recognizes the shortage of mental health professionals and the limitations of current inpatient services, which are primarily hospital-based and focused on short-term stabilization. To fill the critical gap in care, the act establishes a licensure pathway for non-hospital based inpatient residential mental health treatment facilities that will provide mid-to-long-term treatment lasting 45 to 120 days. These facilities will offer comprehensive services, including medication management, skill-based therapies, and holistic approaches tailored to individual needs.

The act outlines specific licensure requirements for these facilities, including accreditation, staffing ratios, mandatory training, and safety standards. It also mandates the development of a Mental Health Workforce Development Program to address the shortage of licensed professionals through training grants, loan forgiveness, and salary incentives. Additionally, the act emphasizes the integration of these facilities into the state's mental health service continuum and requires annual reporting on their impact and compliance. By implementing these measures, the act seeks to improve access to mental health care, reduce hospital admissions, and ultimately enhance the quality of treatment available in New Jersey.